Research into the impact of innovative sustainable energy experiments and demonstrations is crucial to diversifying, scaling up, and accelerating the sustainable energy transition. Although there is vast research into sustainable energy experiments and demonstrations, research literature offers a fragmented collection of findings. A coherent overview of themes and insights regarding the transformative impact of innovative sustainable energy experiments and demonstrations on sustainable energy systems from the past, present, and near future is lacking and necessary to increase experiments and demonstrations' impact on the sustainable energy transition. The research in this study fills this knowledge gap by providing such an overview and yields novel insights into the organized function and impact of experiments and demonstrations. It spans a broad spectrum of sustainable energy technologies, the empirical domains where these are invented, developed and applied, and the stakeholders involved. The overview is the outcome of a Delphi study in which the insights of 47 international scientific research experts in sustainable energy experiments and demonstrations are bundled and explained. This study presents a thematic overview of the significant insights regarding past and current sustainable energy experiments and demonstrations and outlines a research agenda for the future. Policymakers, practitioners, and scientists can leverage this to inform their sustainable energy policies, business strategies, and research programs.
This chapter discusses the rationale for, and the design of, green industrial policy to decarbonize the basic materials industries. Green industrial policy plays a key role in addressing investment coordination challenges and supporting innovation and deployment of clean technologies. By targeting specific sectors or industries, green industrial policy complements general policy measures, such as carbon pricing, broad tax incentives for private R&D, and intellectual property rights (IPR) policies. The chapter emphasizes the critical need for establishing robust institutions that balance the risk of regulatory capture with the need to accurately identify and support appropriate technologies. Overall, the chapter shows the multifaceted nature of policy design and implementation in the pursuit of decarbonizing the basic materials industries.
Globally, there is a strong interest in investments in zero‑carbon technologies, e.g., in industry and the electricity generation sector, but projects supporting the climate transition are argued to be held back by environmental permitting challenges. For this reason, there are calls for novel regulatory reforms that broaden the scope of environmental permitting, and the underlying legal rules, by assigning a more prominent place for projects' climate benefits, i.e., the carbon dioxide emissions displaced elsewhere in the economy. This commentary argues against such a reform, which could create more problems than it solves. It risks increasing the complexity and the uncertainty of environmental permitting process, e.g., by making it more difficult to evaluate how various legal rules should be applied in the context of individual permit applications. Such a reform also clashes with the anti-anti-environment task of environmental law and permitting. The development of zero‑carbon projects and the protection of environmental harms involve difficult trade-offs, but the main role of environmental permitting is to identify measures that allow these goals to co-exist. The solution to this green versus green dilemma is not to reform the scope of permitting processes, but rather improve the ways in which existing legislation is implemented.
This article questions the neoclassical claim that compared to command-and-control instruments such as performance standards, economic policy instruments (e.g., taxes or emission allowance schemes) represent a superior policy approach to mitigate industrial pollution. Based on recent research, we argue that the ongoing transition towards zero-carbon production processes involves specific challenges, which tend to strengthen the case for using standards-based regulations, not least quantitative performance standards. Empirical research suggests that this regulatory approach is not necessarily adopted as crudely as some economic models (and textbooks) suggest. Efforts can be undertaken to reduce the cost of compliance and incentivize technological change. These, in turn, must address the entire set-up of the regulatory systems, including knowledge generation and transfer, social trust, and the forms of relationships between regulators and industry. All in all, it is essential to abstain from simplified normative arguments about instrument choices in environmental policy regardless of the institutional context.
This chapter departs from the dual objective of reusing waste while at the same time mitigating pollution; it focuses on the opportunities and challenges of managing this trade-off through voluntary agreements between various actors. The chapter aims to investigate and discuss the emergence, outcomes, and future challenges of the Swedish voluntary certification scheme REVAQ. This scheme includes efforts among wastewater treatment plants (WWTPs) to build trust for the application of sewage sludge on agricultural land and thus reuse the nutrients contained in it, not least by reducing the presence of metals and organic substances. Our findings suggest that the establishment of REVAQ was, in many ways, a natural response of the incumbent actors to an uncertain regulatory situation. The preventive environmental work pursued because of the certification scheme has been successful, thus resulting in decreased flows of hazardous substances to soil. However, REVAQ faces challenges, largely due to previously unattended trace elements, e.g., microplastics and pharmaceutical residues. These will make it difficult for actors to convince the key stakeholders about the future quality of the sewage sludge. There is also currently a prioritization of system optimization over system change, i.e., a bias towards incremental improvements in the existing system instead of seeking to innovate beyond this system. REVAQ likely contributes to this path dependence and technological lock-in.
Policymakers have increasingly voiced an ambition to combine the transition to a climate-neutral society with a "green" domestic industrial agenda. In recent years, innovation systems scholars have advanced the understanding of the evolution of industries around renewable energy technologies as well as the role of policy feedback (and indeed politics) surrounding the development of domestic green industrial development policies. To take a step towards combining these literature streams, the purpose of this paper is to investigate the role of policy mixes and policy feedback in the emergence of domestic green industries. This is achieved in the empirical case of biofuels in Sweden, and the findings show that policy feedback dynamics created difficulties in aligning the national policy mix with the technology and industrial developments in the country. The resulting political uncertainty predominantly hampered the scaling up of domestic production capacity, while R&D and import of biofuels instead could grow strong. Based on this empirical case, a process model is developed to explain the role of policy feedback in the development of domestic industries, thus demonstrating how the growth of domestic industries is driven by the interplay of policy effects and various feedback processes. The findings suggest that future research into the role of policies in "green" domestic industry growth should devote more attention to the dynamics driving the co-evolution of policy, technology and industry structures.
The objective of this paper is to investigate the determinants of the adoption of green public procurement (GPP) practices at the local authority level. A conceptual contribution of the paper is an analytical framework, which acknowledges that the adoption of green criteria in tenders should be modelled as a conditionally independent decision from the decision to rely on GPP strategies (guidelines). This approach can help provide novel insights into how various political, organizational, and individual characteristics influence GPP. The paper provides an empirical illustration by concentrating on the role of organizational size. This analysis is based on survey responses from civil servants representing 140 Swedish municipalities. The results are based on the bivariate ordered probit estimator and suggest that large municipalities are more likely to rely on GPP strategies but also less prone to adopt green criteria in tenders when controlling for the presence of such strategies. In large organizations, the centralization of the procurement implies efficiency gains, but it will often be accompanied with longer organizational distances between the procuring and the environmental departments. The paper also highlights the wider implications of the proposed framework, including how future research on GPP practices could approach the role of various political and individual factors.
Although the climate challenge requires proactive policies that spur innovation in the renewable energy sector, various countries commit vastly different levels of support for renewable energy R&D. This paper addresses the question why this may be the case. Specifically, the objective is to analyse the determinants of government support to renewable energy R&D in the European Union (EU), and, in doing this, we devote particular attention to the question of whether the level of this support tends to converge or diverge across EU Member States. The investigation relies on a data set of 12 EU Member States and a bias-corrected dynamic panel data estimator. We test for the presence of conditional beta-convergence, and the impacts of energy dependence and electricity regulation on government R&D efforts. The findings display divergence in terms of government support to renewable energy R&D, and this result is robust across various model specifications and key assumptions. The analysis also indicates that countries with a low energy-import dependence and deregulated electricity markets tend to experience lower growth rates in government renewable energy R&D. The paper ends by discussing some implications of the results, primarily from an EU perspective.
This paper addresses the link between the environmental permitting of mining operations and economic development in mineral-rich regions. The purpose is to investigate how uncertainty about the permitting outcomes facing a mining company could affect its subcontractors. A key conceptual point of departure is that this influence can be related to both withheld investments and a lower demand for key inputs, including labor, but also to a reduced overall attractiveness of the community, in turn making it difficult to recruit skilled labor. These issues are illustrated in the empirical context of a Swedish iron ore producer, which for over two years faced the risk of having its existing environmental permit revoked. The results suggest that in this specific case, the main challenge for the affected subcontractors was increased difficulties in recruiting skilled personnel. At a general level, the findings indicate the need to devote increased research attention to the link between government regulation on the one hand, and business growth and regional development on the other, including reputational effects. The paper also discusses the implications for the reform of existing environmental permitting process, nevertheless arguing against the incorporation of additional dimensions of sustainability in this process.
The attractiveness of mineral investments across countries and regions worldwide can be judged through various measures, each with its strengths and weaknesses. The purpose of this paper is to scrutinize the Fraser Institute’s ranking of mining jurisdictions, which builds on eliciting the perceptions of industry representatives around the world through an annual survey. The analysis takes stock in the growing scholarship on country performance indicators and concludes that due to the low response rate and the lack of clear definitions of some of the underlying concepts (e.g., political stability), there are reasons to question both the reliability and the validity of this survey. There could also exist incentives among exploration companies to “game” the rankings. For these reasons, the ranking outcomes do not constitute a meaningful scorecard that countries can employ to improve their mining-related policies. However, despite these deficiencies, the Fraser Institute’s survey often enjoys relatively uncritical media attention. It even sets in motion a political “rankings game” in which the mining companies, governments, and other organized groups choose to participate. There is an urgent need for a more reliable and unbiased survey approach, including the consideration of alternative—complementing—measures for assessing investment attractiveness in the mining industry.
This paper analyzes through what enabling mechanisms pilot and demonstration plants (PDPs) reduce supply and demand uncertainties, and thereby contributing to the market formation for novel sustainable technologies. The analysis builds on three case studies within the advanced biofuel development in Europe. For each case, we construct a narrative of the technology development and derive detailed insights into how technology actors use PDPs to drive market formation. We develop a comprehensive analytical framework, which highlights how PDPs contribute to supply uncertainty reduction through three main enabling mechanisms: building credibility for the technology, business ecosystem orchestration, and technology learning. The corresponding enabling mechanisms behind demand uncertainty reduction include technology standardization, constructing the narrative, and the creation of legitimacy for the technology. The paper also unfolds the composite activities of each mechanism, and outlines implications for technology developers, policymakers, as well as for the research community.
This paper addresses the role of personal norms and warm glow in influencing households' waste recycling preferences. The purpose is to explore inter-household differences in the preferences toward the introduction of curbside recycling, which implies that households are relieved from the responsibility of transporting sorted waste to assigned drop-off stations. The main theoretical point of departure for the analysis is an existing model that integrates norm-motivated behavior into neoclassical utility theory. This builds on the assumption that the household members have preferences for upholding a self-image as responsible—norm-compliant—persons, and it also contains a warm-glow component. The empirical investigation relies on a postal survey to households in a Swedish municipality, and this asks households about their willingness-to-pay (WTP) for the introduction of a curbside recycling scheme, as well as about time use and the presence of personal norms and warm glow motives. The results are based on a Heckman selection specification and show that individuals expressing a strong personal norm for recycling are more likely to be willing to pay for curbside recycling, while those with strong warm glow motives are less likely to do so. This suggests the existence of a mixed blessing of responsibility relief. Curbside recycling implies that households are relieved from a moral responsibility that takes time away from leisure activities, but they also experience a loss in warm glow as such a scheme removes the possibility to pursue something that they have learned to appreciate. There could then exist ‘motivational inertia' making it difficult for policy makers to activate personal norms for new pro-environmental household activities in replacement of existing ones.
The great hopes in Brussels that a circular bioeconomy will help bridge the growing divide between urban and rural areas and allow the hinterlands to prosper from ‘green growth’ are addressed in this article, which reflects on insights from three Nordic case studies of brown, green and blue biomass use at different levels of technology readiness. A closer examination of the forward, backward, fiscal and final demand linkages at regional level from increased biomass utilization, from eastern Finland and northern Sweden to Jutland and North Atlantic islands, suggests that linkages are and will remain relatively weak, predominantly dashing the expectations. As suppliers and exporters of natural resources, disadvantaged regions may all too easily get locked into a ‘staples trap’, where the value creation evaporates owing in part to the steep start‐up costs and the associated boom‐and‐bust cycles, which place them in a weak position vis‐à‐vis the resource manufacturers and consumers. To make the prospects of development, employment and prosperity in the hinterlands materialize, measures are needed to strengthen the regional‐level economic linkages. Regional‐level revolving funds based on benefit‐sharing instruments related to natural resources can be used to bolster economic development, as reflected in such schemes present in both China and Canada. We call for further research into whether and how such approaches can be replicated successfully by channeling revenues from biomass cultivation to regional‐scale revolving funds, with mandates to strengthen long‐term economic linkages and prosperity within the hinterlands. © 2022 The Authors. Biofuels, Bioproducts and Biorefining published by Society of Industrial Chemistry and John Wiley & Sons Ltd
The large-scale deployment of intermittent renewable energy sources for electricity generation has raised concerns regarding the future security of supply. Previous research has studied efficient reforms of electricity markets to address these concerns. In contrast, our paper aims to explain actual policy choices made to provide security of supply. For this purpose, we develop a Public Choice framework, which looks at three interacting decision variables: the timing of regulatory intervention, the decision-making process and the market design. We apply this framework to study the policy debates and decisions related to Germany's 2016 electricity market reform. The analysis builds on the rich empirical material made available through a consultation process preceding the German parliamentary decision. The electricity market reform eventually combined measures to strengthen the energy-only market and the implementation of only limited new capacity payments through a strategic reserve. This was despite the fact that conventional electricity producers strongly lobbied for a fully-fledged capacity market by which they would have benefited from new broad-band capacity payments. Our analysis suggests that the eventual market design decision was strongly affected by the timing of regulatory intervention (existing oversupply of generation capacity) and the decision-making process (an open consultation process revealing broad opposition against capacity markets).
The purpose of this article is to investigate the role of norms and convenience for households' packaging waste sorting activities. The theoretical point of departure is a simple economic model that integrates norm-motivated behavior into neoclassical utility theory by assuming that the individual has a preference for maintaining a self-image as a morally responsible (norm-compliant) person. The empirical analysis rests on survey responses from 398 households in the city of Eskilstuna, Sweden. Self-reported information on recycling contributions and personal norms is analyzed in a bivariate probit model, which estimates the probability of pursuing high-performing recycling efforts as an endogenously determined decisions to the activation of a personal norm for waste sorting. The results suggest that norm activation is an important driver for households' recycling contributions, as is convenience in the form of access to property-close collection schemes. Personal norms are in turn primarily activated by the presence of social, legal, and descriptive norms. One important implication is that policy needs to build on well-aligned policy instrument mixes that combine references to the moral significance of households' recycling contributions with various infrastructural measures that facilitate such contributions.
The paper analyzes the prerequisites for a regulatory-driven transition toward radically lower air and water pollution in industry. This is achieved in the empirical context of the Swedish mining and metals industry, and by investigating the environmental licensing processes during two regulatory systems. The paper derives an analytical framework that explores under what circumstances such licensing processes can result in radical emissions reductions without seriously jeopardizing the competitiveness of the industry. Archived material covering six environmental licensing processes, three during each system, is used to illustrate the various design and implementation issues. The results suggest that regulatory-driven green transitions benefit from trust-based bargaining procedures in which companies are involved in repeated interactions with regulatory authorities, and which extended probation periods permit tests of novel abatement technologies (including innovation). The findings also illustrate the importance of abstaining from simplified normative notions about policy instrument choice (e.g. taxes versus standards).
Biogas from waste and residues is a renewable transportation fuel, which can contribute directly to the fulfillment of several of the UN Sustainable Development Goals. In this paper, we address the question of how biogas value chains, and the respective actor networks, emerge at the local level. The purpose of the paper is to empirically assess the development of local biogas transport systems in three Swedish regions, and how policy – including so-called network management – can support this development. The analysis draws on an analytical framework describing how emerging actor networks can be strengthened, and multiple data collection methods (personal interviews, workshop, and secondary sources). The results indicate that four factors explain the success of developing effective local biogas systems: (i) a clear political vision and an adequate basis for decision-making; (ii) a reliance on green public procurement giving priority to biogas vehicles (including follow-up); (iii) integrated actor networks, facilitating knowledge development and sharing of information; and (iv) strategies to deal with an uneven system growth.
This paper investigates the transformation challenges related to incumbent industries caused by technology development and industry convergence in the transition to a bioeconomy in the context of Swedish biorefinery development. It involves the emergence of new value chains and several incumbent industries such as the pulp and paper industry, the oil refinery sector, the chemical process industry, and the heat and power sector. In 2019, Sweden had Europe's largest share of biofuels in the transport sector, roughly 20% on an energy basis, and this share has increased by around 300% during the last decade. At the same time, domestic production has stalled, and even though Sweden has beneficial conditions for biofuel production, the share of biofuel that is imported or based on imported feedstock has recently ranged between 85% and 90%. We discuss three transformation challenges: (i) inertia and lack of absorptive capacity creating lock-in effects at the organizational level; (ii) weak and inefficient actor networks at the industry level; and (iii) contradictory policy instrument mixes and lack of coordination at the government level. The findings underscore the need for policy integration and alignment across various policy domains, and an increased focus on policy mixes that can stimulate the emergence of more disruptive innovations and value chains. There is also a need for industrial initiatives, such as improving absorptive capacity and strengthening actor networks, to help build the value chains needed to realize a sustainable bioeconomy. 2021 The Authors. Biofuels, Bioproducts and Biorefining published by Society of Industrial Chemistry and John Wiley & Sons Ltd
The purpose of this paper is to investigate the relationship between green industrial policies and domestic biofuel production among OECD countries. The analysis builds on a data set including 24 OECD countries over the time period 2000–2016. This panel is estimated using a variant of the so-called Poisson pseudo-maximum-likelihood model and includes the mix of demand-pull (biofuel blending mandates) and technology-push policies (government R&D), as well as the interaction between these two types of instruments. The results suggest a positive relationship between blending mandates and domestic biofuel production. Thus, a more stringent blending mandate does not only increase the use of biofuels, but also domestic production (as a share of total fuel use). Government R&D has not, however, induced domestic biofuel industrialization processes. The results even suggest a negative interaction effect between government R&D and blending mandates, in turn implying that these two polices target different technological fields. The blending mandates tend to primarily favor commercialized first-generation biofuels, while government support to biofuel R&D has instead been focused on advanced biofuel technology.